What was the net loss for Cr3 American Exteriors during the year 2022?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Loss | (46,591) | | Equity at December 31, 2022 | $ 4,820 | | Equity at January 1, 2023 | $ 4,820 | | Capital Contributions | 28,589 | | Net Loss | (14,538) | | Equity at December 31, 2023 | $ 18,871 | | Equity at January 1, 2024 | $ 18,871 | | Capital Contributions | 30,000 | | Net Loss | 89,667 | | Equity at December 31, 2024 | $ 138,538 |
Statements of Cash Flows For The Three Years Ended December 31, 2024
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows From Operating Activities: | · | ||
| Net Income (Loss) | $ 89,667 | $ (14,538) | $ (46,591) |
| Adjustments to Reconcile Net Loss to Net | |||
| Cash Provided by Operating Activities: | |||
| Depreciation & Amortization | 87 | 87 | 29 |
| Changes in Assets and Liabilities | |||
| (Increase) Decrease in Prepaid Expenses | (1,525) | = | |
| (Increase) Decrease in Accounts Receivable | (283,085) | (29,624) | - |
| (Increase) Decrease in Other Receivables | (15,591) | (25,000) | _ |
| Increase (Decrease) in Accounts Payable | 32,746 | 1,965 | = |
| Increase (Decrease) in Payroll Liabilities | 1,628 | 1,523 | - |
| Increase (Decrease) in Deferred Revenue | 307,113 | 32,375 | - |
| Net Cash Provided by Operating Activities | 131,040 | (33,212) | (46,562) |
| Cash Flows From Investing Activities: | |||
| Due To Affiliates | (38,293) | 47,328 | _ |
| Purchase of Assets | (50,275) | 47,320 | (1,300) |
| Net Cash Provided by Investing Activities | (38,293) | 47,328 | $\frac{(1,300)}{(1,300)}$ |
| Cash Flows From Financing Activities: | W-1000-7 | ||
| Capital Contributions | 30,000 | 28,589 |
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the company experienced a net loss of $46,591 in 2022. This figure is part of the provided cash flow statement, which details the company's financial performance over the past three years. The statement includes various cash flow activities, such as operating, investing, and financing activities, providing a comprehensive view of the company's financial health.
For a prospective franchisee, this net loss figure is an important consideration. It indicates that the company was not profitable in 2022, which could raise concerns about its financial stability and business model. However, it's essential to consider this figure in the context of the company's overall financial performance, including its cash flow, capital contributions, and equity. A single year's loss does not necessarily indicate long-term financial instability, especially if the company has shown improvements in subsequent years.
It is also important to note that the company had capital contributions of $51,411 during 2022, which helped to offset the net loss and maintain a positive equity balance. Additionally, the cash flow statement includes adjustments for depreciation and amortization, changes in assets and liabilities, and other factors that can impact the company's cash flow. These adjustments provide a more accurate picture of the company's financial performance than net income alone.
Overall, the net loss of $46,591 in 2022 is a significant data point for potential Cr3 American Exteriors franchisees. While a loss is never ideal, understanding the context of this loss within the broader financial statement is crucial for making an informed investment decision. Prospective franchisees should further investigate the reasons behind the loss and assess the company's strategies for future profitability.